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> 3) They have a large number of interconnected corporate entities and nobody has the big picture. (Like FTX). This isn't true, is it? FTX had <5 corporate ent
by ethbr0 4y ago
> 3) They have a large number of interconnected corporate entities and nobody has the big picture. (Like FTX).
This isn't true, is it? FTX had <5 corporate entities, right?
The issue was more with (1) and (2).
- patio11 4y agoFTX had more than 100 entities. You can find the org chart in the bankruptcy filing or here: https://qz.com/ftx-bankruptcy-filing-reveals-a-remarkably-convoluted-c-1849797496 https://qz.com/ftx-bankruptcy-filing-reveals-a-remarkably-co...
- cj 4y agoSource: Page 30 https://pacer-documents.s3.amazonaws.com/33/188450/042020648197.pdf https://pacer-documents.s3.amazonaws.com/33/188450/042020648...
- ethbr0 4y agoOof. The preliminary corporate outline in Appendixes B of the filing is a lot. I guess presumably you'd want to compartmentalize risk via corporate structures in as sprawling of a business as FTX was (especially if you were aware you had terrible internal controls), but it does beg the question of what nature of business each of these entities was engaged in. I.e. if they conducting actual business and so their existence helped firewall other FTX entities, or if they simply existed on paper for accounting fraud
- europeanguy 4y agoIt wasn't a "as sprawling of a business as FTX was". It was a shell game.
- ethbr0 4y agoFTX (in total) was an entity that operated in most countries in the world, under their regulatory regimes (if existent), across four(+?) major, different lines of business. That's not a "one corporate entity + a few international ones" type of endeavor.
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